Turkey’s economic turmoil is worsening amid a fresh bout of currency depreciation, but a deafening silence reigns over the country’s leading business groups as few seem to have the courage to openly criticize President Recep Tayyip Erdogan and his government.

The freefall of the Turkish lira has meant a 48% increase in the price of the dollar over a year, threatening to send inflation out of control. And the COVID-19 pandemic, which is picking up anew, has only compounded the economic tumult plaguing Turkey since mid-2018.

In October alone, the price of the dollar rose 9%. The Central Bank stood by, unlike in September, when it had raised interest rates to prop up the lira. The bank’s inaction only fueled the rush for dollars as many feared that they could be late in seeking the safe haven of hard currencies. Strikingly, hard currency has come to account for about 60% of individual deposits in Turkey.



Written by Mustafa Sönmez